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Highlights
- The ongoing market volatility has spurred investors’ attention towards stable and mature stocks that could help them sustain in the inflationary environment and prepare for interest rate hikes.
- Dividend-paying bank stocks, for one, are grabbing eyeballs in the light of the ongoing earnings season and TD Bank’s (TSX:TD) US$ 13.4 billion deal to buy First Horizon Corp (NYSE: FNH, FNH: US) to expand its US operations.
- Some financial stocks, such as Royal Bank of Canada (TSX:RY), are generally known for paying a stable dividend.
The ongoing market volatility seem to be encouraging investors to turn towards stable and mature dividend stocks that can help them sustain in the inflationary environment and prepare for interest rate hikes.
Dividend-paying bank stocks, for one, are grabbing eyeballs in the light of the ongoing earnings season and TD Bank’s (TSX:TD) US$ 13.4 billion deal to buy First Horizon Corp (NYSE: FNH, FNH: US) to expand its US operations.
Also read: Toronto-Dominion (TD) to buy First Horizon (FHN). Bank stocks to bag?
On that note, let us look at five TSX dividend-paying financial stocks for their passive income options.
1. Royal Bank of Canada (TSX: RY)
Royal Bank of Canada’s net income jumped six per cent year-over-year (YoY) to C$ 4.1 billion in Q1 FY2022. RBC also declared a quarterly dividend of C$ 1.20 per share, payable on May 24 (ex-dividend on April 22).
RBC stock spiked by over 29 per cent YoY and closed at C$ 140.21 apiece on Monday, February 28.
2. Canadian Imperial Bank of Commerce (TSX: CIBC)
CIBC increased its net profit by 15 per cent YoY in Q1 FY2022 to C$ 1.86 billion. The Canadian bank will pay a quarterly dividend of C$ 1.61 apiece on April 28 (ex-dividend on March 25).
Having closed at C$ 160.43 apiece on Monday, CM stock shot up by nearly 37 per cent over the past one year.
3. National Bank of Canada (TSX: NA)
National Bank of Canada is scheduled for a quarterly dividend payment of C$ 0.87 apiece on May 1 (ex-dividend on March 25).
NA stock closed at C$ 101.63 apiece on Monday, with a one-year return of almost 27 per cent.
Also read: What is SWIFT system & why is it crucial in the Russia-Ukraine crisis?
4. Sun Life Financial Inc (TSX: SLF)
Sun Life Financial currently holds a five-year dividend growth rate of nearly eight per cent. The C$ 39-billion market cap financial company will dole out a quarterly dividend of C$ 0.66 per share on March 31 (ex-dividend on March 1).
SLF stock closed at C$ 66.66 per share on Monday.
5. goeasy Ltd (TSX: GSY)
goeasy held a three-year dividend growth of over 43 per cent at the time of writing this. The credit service company is set to pay-out an increased dividend of C$ 0.91 apiece on April 8 (ex-dividend on March 24), up from C$ 0.66 paid earlier.
GSY stock gained about 21 per cent in the last one year and closed at C$ 150.19 per share on Monday.
Bottomline
Financial stocks, like the Royal Bank of Canada (TSX:RY), are generally known for paying a stable dividend. Such companies are usually backed by solid businesses and are likely to exhibit steady growth during challenging times.
However, investors should act on any decisions based on their market research and strictly adhere to their investment objectives and risk tolerance.
Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
